Bangladesh set to pay up to 37% more for third floating LNG terminal

Bangladesh may pay as much as 37 percent more for regasification at its proposed third LNG terminal than it currently pays at existing facilities. The government’s negotiation committee forwarded two proposals from Chinese state-owned China National Energy Engineering & Construction Co, while acknowledging that it could not determine how much of the higher price was justified.

CNEE submitted its proposal on June 19 for an offshore terminal at Kutubjom in Maheshkhali under a build-own-operate model. The floating storage and regasification unit would have a base capacity of 600 million cubic feet per day and a peak capacity of 750 mmcfd. Under a 15-year contract, the company would charge $342,000 a day.

Bangladesh currently pays $254,000 a day for Excelerate Energy’s FSRU and $249,115 for Summit LNG terminal’s unit. The proposed fee also exceeds the $300,000 daily rate Petrobangla agreed in March 2024 for Summit’s proposed second FSRU at Moheshkhali. Petrobangla terminated that agreement in October 2024 after the fall of the Awami League-led government, and Summit challenged the termination in court. The case remains pending.

The proposed CNEE rate is also above the $239,653 daily benchmark recommended in a 2025 feasibility study by state-owned Rupantarita Prakritik Gas Company. On August 30, the seven-member negotiation committee recommended two options: a 15-year contract at $342,000 a day or a 20-year contract at $329,000. Under the 15-year option, the daily charge would comprise a $246,000 fixed fee, a $59,000 operating fee, and a $37,000 port service fee.

CNEE attributed the price to changes in the market after the recent war in the Middle East, uncertainty over energy supplies, higher shipbuilding-material costs, rising global demand for FSRUs, and scheduling constraints. The company has said it must deliver the terminal within 18 months of signing. The committee said those conditions could justify a higher rate, but that a detailed assessment or study was needed to establish a reasonable premium.

The proposal called for commissioning the FSRU by September or October 2028 if a letter of intent was issued by July 2026 and project agreements signed by September 2026. The Cabinet Committee on Economic Affairs approved the proposal in principle on July 28. CNEE also said it was “willing to supply long term LNG to Bangladesh.” A negotiation committee was formed the following day.

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willing to supply long term LNG to Bangladesh